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July 6, 2018

Russia offers to jointly design, build submarines

India has received a joint submarine design and construction proposal
from Russia to build on the technology transfer acquired while building
the nuclear fleet, and promises to drastically reduce the cost of Navy’s
next-generation vessel plan.

The proposal, believed to have
been discussed at the top level during the Sochi summit in May, offers
an alternative to an upcoming $10 b P 75I tender for six new diesel
electric submarines that the Navy requires. These are to be fitted with
an Air Independent Propulsion (AIP) system that significantly increases
their ability to stay underwater.

“The Russian side has offered a
transfer of all intellectual property for the design and prototype
construction. This will mean that there are also no limits to the number
of submarines that can be built under the project...,” officials
familiar with the details told ET.

While the current plan is to
go in for a global competitive process that will involve companies from
Russia, France, Germany and Sweden, the official proposal from Moscow is
for a government-to-government deal for joint design with the Advanced
Technology Vessel Project (ATVP). This is the project that gave India
its first nuclear armed submarine, the INS Arihant, which was
constructed in Vizag with considerable assistance from Russia.

A
line of nuclear armed and nuclear powered submarines will be rolled out
under the project which has completed the Indian nuclear triad -- the
ability to launch warheads from air, land and underwater.

Sources
told ET that the proposal is for joint design and building of a
prototype, following which the technical knowhow and papers would be
transferred to the selected Indian shipyard for construction. The design
consultancy for the project is pegged at under $200 million, something
that could result in savings of immediate payments for the Navy for its
next-generation submarines.

Under the competitive process, an
initial payment of over $ 2 billion (20% of total cost) might be
necessary, which given the Navy’s current budget projections, seems
difficult. The proposal seeks to design the submarine to meet Indian
requirements, including installation of the Brahmos missiles on board,
as well as a jointly developed AIP system with the Defence Research and
Development Organisation.

Sources involved in the Indian nuclear
submarine project said that the proposal can build on the technology
that has already been transferred to India but has to be scrutinized
carefully to ensure that critical knowhow is not held back. Several
parts required under the proposal are already being produced in India,
including high strength steel for submarine hulls.